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2022-03-31-accounts

St Teresa’s Home CIO Annual Report and Accounts

31 March 2022

Charity Registration Number 1189921

St Teresa’s Home CIO

Contents

Reports

Reports Reports
Reference and administration details of the
charity, its trustees, and advisers 1
Report of the trustees 2
Independent auditor’s report 9
Accounts
Statement of financial activities 14
Balance sheet 16
Principal accounting policies 18
Notes to the accounts 23

St Teresa’s Home CIO

Reference and administration details of the charity, its trustees, and advisers

Trustees Sister Patricia Mary Heller David Hince Gabriel MacGregor Sister Mary Josephine Hanningan Sister Jennifer Rosemary Brown Correspondence Address 12 Lansdowne Road Wimbledon London SW20 8AN Charity registration number 1189921 Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Bankers National Westminster Bank plc Wimbledon Branch 16 Wimbledon Hill Road Wimbledon London SW19 7NN Principal investment managers Rathbone Investment Management Limited and advisers 8 Finsbury Circus London EC2M 7AZ Solicitors Irwin Mitchell LLP Mercantile House 18 London Road Newbury RG14 1JX Stone King LLP Boundary House 91 Charterhouse Street London EC1M 4BS

St Teresa’s Home CIO 1

Report of the trustees 31 March 2022

The trustees present their report together with the accounts of the St Teresa’s Home CIO (the “charity” or the “CIO”) for the year ended 31 March 2022.

The accounts have been prepared in accordance with the accounting policies set out on pages 18 to 22 and comply with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The principles set out in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) have been followed in the preparation of this report and accounts.

Introduction

St Teresa's Home CIO was registered with the Charity Commission on 12 June 2020. The charity operates one care home for the elderly and is registered as a 'Care Home with Nursing" with the CQC (Care Quality Commission).

The charity is governed by a Constitution.

Objective

The aim of the charity is to relieve sickness by reason of age, illness, or disability.

The charity commenced activity on 1 December 2021. With effect from midnight on 30 November 2021, the assets, liabilities and activities of St Teresa’s Home for the Elderly in Wimbledon, London (St Teresa’s or the Home), previously part of the Congregation of the Sisters of St Anne Charitable Trust (Charity Registration No. 233808), were transferred to the charity in accordance with a legal transfer deed.

The aim of the charity is to operate the Home and provide a happy, homely, and relaxed atmosphere where the residents are cared for until the end of their days. To that end, all the staff are encouraged to work as a team maintaining a high professional standard of care for the residents' total needs ensuring the dignity of each individual is upheld. The residents will be supported and enabled to maintain their independence for as long as possible.

Activities, specific objectives and relevant policies

Activities and specific objectives

As noted above, with effect from midnight on 30 November 2021 the activities, assets and liabilities of the St Teresa’s Care Home for the Elderly were transferred to the charity from the Congregation of the Sisters of St Anne Charitable Trust. The charity, therefore, now owns and operates that one care home.

The philosophy of care at the Home is to ensure a homely, friendly and open atmosphere among residents and staff whilst maintaining the privacy, dignity, rights and quality of life of all residents.

The Home provides long-term residential and nursing care for the elderly. It also offers short-term respite care for those coming out of hospital or to enable carers to take a break.

Report of the trustees 31 March 2022

Activities, specific objectives and relevant policies (continued)

Activities and specific objectives (continued)

There are 24 rooms at St Teresa’s, many with en-suite facilities. Each room has a telephone and television and is linked to the call system. All areas of the Home are accessible by either stairs or lifts, and residents are encouraged to take meals in the dining room. The Home has spacious communal areas where residents are encouraged to sit and talk to one another, watch television or partake in one of the very many activities or social events organised by the staff. The Home has a chapel and landscaped grounds.

In operating this Home, the trustees of the charity aim to:

Achievements and performance

The Staff have been exemplary in the last year coping with Covid and keeping residents safe as much as possible. Although we had a few cases with residents and staff, all coped remarkably and came through it.

We have been able to return to letting visitors come into the home and that has been beneficial to all.

Following Government guidelines, all families were kept informed of any changes regularly regarding visiting etc.

During the year Matron and her Deputy went forward for the Gold Standards Framework Award (end of life care of residents in their final months/weeks, which they have been doing since 2012).

It is the dignity with which all are cared for that matters not only for our residents but their families also.

Some staff have moved on in their careers and we have been able to recruit others through our own staff which has been a great asset in the climate of recruiting Staff in our field today.

St Teresa’s Home CIO 3

Report of the trustees 31 March 2022

Activities, specific objectives and relevant policies (continued)

Investment policy

Rathbone Investment Management Limited manage the charity’s listed investments on a discretionary basis. There are no restrictions on the charity’s power to invest.

The investment strategy is set by the trustees and takes into account income requirements, the risk profile and the investment managers’ view of the market prospects in the medium term.

The policy is to maximise total return through a diversified portfolio whilst providing a level of income advised by the trustees from time to time. There is also an Ethical Policy precluding investment in any company which, after reasonable enquiry, clearly has significant profits from an activity which is contrary to the objectives of the Catholic Church.

The performance of the portfolio and the charity’s investment strategy are reviewed by the trustees who meet with the investment managers annually.

Fundraising policy

The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. The charity takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charity manages its own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. The charity has received no complaints about its fundraising activities.

Financial review

Results for the year

A summary of the year’s results can be found on page 14 of this report and accounts.

The results reflect the activities of the charity from 1 December 2021. Net assets of £1,992,925 were transferred to the charity with effect from midnight on 30 November 2021 from The Congregation of the Sisters of St Anne Charitable Trust. Prior to that date, the charity was dormant. Therefore, both total income and total expenditure for the year arose in the four months to 31 March 2022.

Income for the year was £465,423. £444,850 related to fees receivable from the charity’s care home and there were Covid-19 infection control grants of £17,323 received. £870 was received by way of donations and legacies. Investment income and interest receivable totalled £2,370.

St Teresa’s Home CIO 4

Report of the trustees 31 March 2022

Expenditure totalled £501,910 with staff costs representing a significant proportion of this and amounting to £385,704.

Financial review (continued)

Results for the year (continued)

Net expenditure from operating activities, therefore, was £36,487 during the year. After accounting for the net assets transferred in to the charity and also the net investment losses of £36,131 there was an increase in funds for the year of £1,920,307.

Investment performance

At 31 March 2022, the charity had a portfolio of listed investments with a market value of £679,499 and the investment managers held a further £50,376 of cash for re-investment.

During the four months to 31 March 2022, the charity’s investments achieved income of £2,370 but incurred net losses of £36,131. The investment managers continue to invest in accordance with the trustees’ investment policy set out earlier in this report and to comply with the ethical guidelines given to them. At the end of the year, the charity’s portfolio of listed investments comprised 48% UK equities, 12% UK fixed interest stocks, and 40% overseas unit trusts.

Since the year end, the charity’s investments have continued to be affected by the turbulent investment markets caused by the macroeconomic and geopolitical climate. However, the trustees are long term investors and are of the opinion that their investment objectives are being met.

Reserves policy and financial position

Reserves policy

The trustees have examined the need for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charity’s work, the level of free reserves should be approximately equal to six to twelve months’ expenditure.

Financial position

The balance sheet shows total reserves of £1,920,307. Of this, £1,126,889 is represented by properties and other tangible fixed assets essential for the work of the Home.

Funds available to support the work of the charity in the future are shown as general funds (i.e. free reserves) on the balance sheet and amount to £793,418. This figure needs to be considered in the light of annual expenditure of £1.4m.

The trustees believe that free reserves are adequate at the present time and consistent with the above reserve policy. The trustees are cautious about the impact on the charity of the current macroeconomic and geopolitical climate.

St Teresa’s Home CIO 5

Report of the trustees 31 March 2022

Governance, structure, and management

Governance

The charity is a Charitable Incorporated Organisation (CIO) governed by a Constitution and registered with the Charity Commission on 12 June 2020.

The members of the CIO are the charity’s trustees. If the CIO is wound up, the members of the CIO have no liability to contribute to its assets and have no personal responsibility for settling its debts and liabilities.

The names of the trustees are given on page 1 of this document.

Structure and management reporting

The trustees are ultimately responsible for the policies, activities, and assets of the charity. They meet regularly to review developments with regard to the charity or its activities and make any important decisions. When necessary, the trustees seek advice and support from the charity’s professional advisers including investment managers, solicitors, and accountants.

Trustees

At any time there must be a minimum of three trustees.

There is no maximum number of trustees that may be appointed to the CIO.

In selecting individuals for appointment the charity trustees have regard to the skills, knowledge and experience needed for the effective administration of the CIO.

Trustees’ responsibilities statement

The trustees are responsible for preparing the trustees’ report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial period which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these accounts, the trustees are required to:

St Teresa’s Home CIO 6

Report of the trustees 31 March 2022

Governance, structure, and management (continued)

Trustees’ responsibilities statement (continued)

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Key management personnel

The trustees consider that they, together with the Registered Care Manager of St Teresa’s Home, comprise the key management personnel of the charity.

The trustees receive no remuneration in respect of their duties.

Risk management

The trustees have identified and considered the major risks to which the charity is exposed . Systems have been established to mitigate those risks and the risk policies which have been developed will be regularly updated and adapted as circumstances change.

The trustees intend to undertake an annual review of the principal risks and uncertainties that the charity faces categorising the risks between those affecting the governance and management of the charity, operational risks, financial risks, reputational risks and those which occur because of circumstances outside of the charity's control such as changes in government policy, laws and regulations. They will regularly review the measures already in place, or needing to be put in place, to establish policies, systems and procedures to mitigate those risks identified in the annual review and ensure that action is taken to implement changes to those policies, systems and procedures should they be needed to minimise or manage any potential impact on the charity should those risks materialise.

Having assessed the major risks to which the charity is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.

Key risks are described below together with the principal ways in which they are mitigated:

St Teresa’s Home CIO 7

Report of the trustees 31 March 2022

Governance, structure, and management (continued)

Risk management (continued)

Future plans

It is the intention of the trustees to continue to operate one high quality care home and in particular:

Signed on behalf of the trustees

Patricia Heller Trustee

Approved by the trustees on: 6[th] December 2022

St Teresa’s Home CIO 8

Independent auditor’s report 31 March 2022

Independent auditor’s report to the trustees of St Teresa’s Home CIO

Opinion

We have audited the accounts of St Teresa’s Home CIO (the charity) for the year ended 31 March 2022, which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s or group’s ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Independent auditor’s report 31 March 2022

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Accounts, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

St Teresa’s Home CIO 10

Independent auditor’s report 31 March 2022

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

St Teresa’s Home CIO 11

Independent auditor’s report 31 March 2022

Auditor’s responsibilities for the audit of the accounts (continued)

How the audit was considered capable of detecting irregularities including fraud (continued)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

We did not identify any irregularities, including fraud.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

St Teresa’s Home CIO 12

Independent auditor’s report 31 March 2022

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Amanda Francis (Senior Statutory Auditor) 8 December 2022 For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

St Teresa’s Home CIO 13

Statement of financial activities Year to 31 March 2022

Notes Unrestricted funds Unrestricted funds
2022
£		 12 June
2020 to 31
March
2021
£
Income from:
Donations and legacies
Investments and interest receivable
Charitable activities
. Provision of care for the elderly
1
Other sources
. Miscellaneous income
. Covid-19 Infection Control grant
Transfer from The Congregation of the Sisters of St Anne
Charitable Trust (Charity Registration No. 233808)
15
Total income
Expenditure on:
Raising funds
. Investment management fees
Charitable activities
. Provision of care for the elderly
2
Total expenditure
Net income before net investment losses
4
Net investment losses
Net income and net movement in funds
Reconciliation of funds
Balances brought forward at 1 April 2021
Balances carried forward at 31 March 2022		 870
2,370
444,850
10
17,323		 —
—
—
—
465,423
1,992,925		 —
—
2,458,348 —
3,754
498,156		 —
—
501,910 —
1,956,438
(36,131)		 —
—
1,920,307
—		 —
—
1,920,307 —

The Home has no recognised gains and losses other than those shown above and, therefore, no separate statement of total recognised gains and losses has been presented.

With effect from midnight on 30 November 2021, the activities, assets and liabilities of The Congregation of the Sisters of St Anne Charitable Trust (Charity Registration No. 233808) were transferred as a going concern into the CIO.

St Teresa’s Home CIO 14

Statement of financial activities Year to 31 March 2022

The table below shows the comparative results of the activities of St Teresa's Home for the Elderly (previously part of The Congregation of the Sisters of St Anne Charitable Trust (Charity Registration No. 233808)).

4 months to
31 March
2022
£		 8 months to
30 November
2021
£
Total
2022
£
Total
2021
£
Income (excluding transfer from the charitable trust)
Expenditure
Net expenditure for the period before
investment (losses) gains
Net investment (losses) gains
Net (expenditure) income and net movement in
funds		 465,423
**(501,910) **		 855,412
(910,012)
1,320,835
**(1,411,922) **		 1,303,425
(1,393,687)
(36,487)
**(36,131) **		 (54,600)
74,333
(91,087)

38,202		 (90,262)
96,994

**(72,618) **		 19,733
**(52,885) **		 6,732

St Teresa’s Home CIO 15

Balance sheet 31 March 2022

Notes 2022
£		 2022
£		 2021
£		 2021
£
Fixed assets
Tangible assets
7
Investments
8
Current assets
Debtors
9
Cash at bank and in hand
Liabilities
Creditors: amounts falling due
within one year
10
Net current assets
Total net assets
Represented by:
Funds and reserves
Unrestricted income funds
. Tangible fixed assets fund
11
. General fund		 134,701
145,190		 1,126,889
729,875		 —
—		 —
—
1,856,764
63,543		 —
—
279,891
(216,348)		 —
—
1,920,307 —
1,126,889
793,418		 —
—
1,920,307 —

Approved by the trustees and signed on their behalf by:

Patricia Heller

Trustee

Approved on: 6[th] December 2022

St Teresa’s Home CIO 16

Statement of cash flows Year to 31 March 2022

Notes
2022
£		 2021
£
Cash flows from operating activities:
Net cash (used in) provided by operating activities
A
Cash flows from investing activities:
Investment income and interest received
Proceeds from the disposal of investments
Purchase of investments
Net cash (used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents transferred from The
Congregation of the Sisters of St Anne (Charity Registration
No. 233808)
B
Cash and cash equivalents at 31 March 2022
B
(48,642)		 —
2,306
48,939
(55,178)		 —
—
—
(3,933) —
(52,575)

248,142		 —
—

195,566		 —

Notes to the statement of cash flows for the year to 31 March 2022.

A Reconciliation of net movement in funds to net cash (used in) provided by operating activities

activities
2022
£		 2021
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Donation of net assets from The Congregation of the Sisters of St Anne
(Charity Registration No. 233808)
Depreciation charge
Losses on investments
Investment income and interest receivable
(Increase) in debtors
Increase in creditors
Net cash(used in) provided by operating activities
1,920,307
(1,992,925)
23,246
36,131
(2,370)
(36,608)
3,577		 —
—
—
—
—
—
—
(48,642) —

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2022
£		 2021
£
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 145,190
50,376		 —
—
195,566 —

No separate statement of changes in net debt has been prepared as there is no difference between the movements in cash and cash equivalents and movement in net cash (debt).

St Teresa’s Home CIO 17

Principal accounting policies 31 March 2022

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

The charity commenced activity on 1 December 2021 and was dormant for the period from incorporation on 12 April 2020 until that date.

These accounts have been prepared for the period for the year to 31 March 2022. The nil comparative figures reflect the fact that St Teresa’s Home CIO was dormant throughout the period to 31 March 2021.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees to make significant judgements and estimates.

The items in the accounts where these judgments and estimates have been made include:

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these accounts.

St Teresa’s Home CIO 18

Principal accounting policies 31 March 2022

Assessment of going concern (continued)

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably, and it is probable that the income will be received.

Income comprises donations, legacies, investment income, interest receivable, fees and related charges in respect to residential and nursing care provision and other income.

Donations and grants are recognised when the charity and/or the charity has confirmation of both the amount and settlement date. In the event of donations and/or grants pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation or grant is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

In accordance with the Charities SORP FRS 102, no value has been placed on services provided by volunteers.

Legacies are included in the statement of financial activities when the charity and/or the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.

Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution.

Investment income is recognised once the dividend has been declared and notification has been received of the dividend due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Fees and related charges in respect to the provision of residential and nursing care are measured at fair value of the consideration received or receivable being the invoiced amount excluding discounts and rebates. Provision is made against any amount deemed irrecoverable or where the debt is doubtful.

St Teresa’s Home CIO 19

Principal accounting policies 31 March 2022

Income recognition (continued)

All other income, including grants received in response to the Covid-19 pandemic, is recognised to the extent that it is probable that the economic benefits will flow to the charity and the revenue can be measured reliably. It is measured at fair value and accounted for on an accruals basis.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. The classification between activities is as follows:

All expenditure is stated inclusive of irrecoverable VAT.

Support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

All expenditure on support and governance is attributed directly to the provision of nursing and residential care. Hence, there has been no apportionment between expenditure headings.

Tangible fixed assets

All assets costing more than £1,500 and with an expected useful life exceeding one year are capitalised. The tangible fixed assets were transferred to the charity with effect from midnight on 30 November 2021 with the cost and accumulated depreciation reflecting the values transferred across from the Congregation of the Sisters of St Anne Charitable Trust as at that date. These values represented the original cost of the assets to the Congregation of the Sisters of St Anne Charitable Trust and the depreciation charged on the assets up to the date of transfer.

St Teresa’s Home CIO 20

Principal accounting policies 31 March 2022

Tangible fixed assets (continued)

Improvements to facilities and refurbishment projects are capitalised and depreciated over a ten year period on a straight line basis.

Motor vehicles are capitalised at cost and depreciated over a four year period, on a straight line basis, in order to write off the cost of each vehicle over its estimated useful life.

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

A key financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Debtors

Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

St Teresa’s Home CIO 21

Principal accounting policies 31 March 2022

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Fund structure

The funds of the charity are in the main unrestricted and available for use in furtherance of the charity’s objectives at the discretion of the trustees. Within the total unrestricted funds of the charity, the trustees have identified separately those funds representing tanible fixed assets (see note 11).

Pensions

The charity offers its employees membership of a defined contribution pension scheme administered by the National Employment Savings Trust (NEST). Contributions to the scheme are debited to the statement of financial activities in the year which they are payable to the scheme. The assets of the scheme are held by an independent corporate trustee, whose activities are governed by the National Employment Savings Trust Order 2010, made by the Secretary of State in exercise of powers confirmed under the Pensions Act 2008.

St Teresa’s Home CIO 22

Notes to the accounts Year to 31 March 2022

1 Income from: Provision of care for the elderly

2022
£		 12 June
2020 to
31 March
2021
£
Residential and nursing care fees
Less: subsidies to residents		 452,507
(7,657)		 —
—
444,850 —

2 Expenditure on: Provision of care for the elderly

2022
£		 12 June
2020 to
31 March
2021
£
Staff costs
Premises
Provisions
Residents’ welfare and medical expenses
Depreciation
Other support and governance costs		 385,704
37,098
17,157
8,553
23,246
26,398		 —
—
—
—
—
—
498,156 —

3 Governance costs

2022
£		 12 June
2020 to
31 March
2021
£
Audit fees 10,400 —

4 Net expenditure before net investment losses This is stated after charging:

2022
£		 12 June
2020 to
31 March
2021
£
Staff costs (note 5)
Depreciation
Audit fees
. 2021
. 2022		 385,704
23,245
2,000
8,400		 —
—
—
—

St Teresa’s Home CIO 23

Notes to the accounts Year to 31 March 2022

5 Staff costs, trustees’ remuneration and key management personnel

2022
£		 12 June
2020 to
31 March
2021
£
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Pension contributions
Agency staff		 343,732
33,716
8,096		 961,721
88,644
26,971
385,544
160		 1,077,336
319
385,704 1,077,655

There were no employees whose employee benefits (excluding employer pension costs) exceeded £60,000.

The average number of employees, analysed by function, was:

2022 12 June
2020 to
31 March
2021
Residential and nursing care
Management		 34
2		 —
—
36 —

The key management personnel of the Home in charge of directing and controlling, running and operating the Home on a day to day basis comprise the trustees together with the Registered Care Manager. The trustees have delegated the responsibility of running the Home to the Administrator, Sister Patricia Heller, who is also a trustee. Nursing staff report to the Registered Care Manager. All other staff report to the Administrator.

The total remuneration (including taxable benefits and employer’s pension contributions) of the key management personnel for the year was £28,027 (2021 - £nil).

The Administrator is a member of the Roman Catholic Congregation of the Sisters of St Anne. A charitable contribution is made by the Home to The Congregation of the Sisters of St Anne Charitable Trust in recognition of her services as Administrator of the Home. This contribution and the pay of the Registered Care Manager of the Home is reviewed annually by the trustees. The payments generally are increased in line with average earnings within the Home.

No trustee received any remuneration directly from the Home in respect of their services during the year (2021 - £nil). No trustee received reimbursement of expenses during the year (2021 - £nil).

St Teresa’s Home CIO 24

Notes to the accounts Year to 31 March 2022

6 Taxation

St Teresa’s Home CIO is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

7 Tangible fixed assets

Freehold land
and buildings –
specialised
£
Freehold
improvements
£
Motor
vehicles
£
Furniture,
equipment
and
improvements
£
Total
£
Cost
At 1 April 2021
Transferred from The
Congregation of the Sisters of St
Anne Charitable Trust (Charity
Registration No. 233808)
At 31 March 2022
Depreciation
At 1 April 2021
Transferred from The
Congregation of the Sisters of St
Anne Charitable Trust (Charity
Registration No. 233808)
Charge for the period
At 31 March 2022
Net book values
At 31 March 2022
At 31 March 2021		 —
1,595,954
—

97,841
—

17,023
—

452,204
—

2,163,022
1,595,954
97,841
17,023
452,204
2,163,022
—
624,880
10,078
—

31,782

652
—

17,023

—
—

339,203

12,515
—

1,012,888

23,245
634,958
32,434
17,023
351,718
1,036,133
960,996
65,407
—
100,486
1,126,889
—
—
—
—
—

St Teresa’s Home CIO 25

Notes to the accounts Year to 31 March 2022

8 Investments

Investments
2022
£		 2021
£
Market value at 1 April 2021
Transferred from The Congregation of the Sisters of St Anne Charitable
Trust (Charity Registration No. 233808)
Additions at cost
Disposals at book value (see below)
Net unrealised losses
Market value at 31 March 2022
Cash held by investment managers for reinvestment
Cost at 31 March 2022		 —

709,391
55,178
(54,484)
(30,586)		 —
—
—
—
—
679,499
50,376		 —
—
729,875 —
555,752 —

Disposals at book value included above are made up of the following:

2022
£		 2021
£
Proceeds
Realised losses
Disposals at book value		 48,939
5,545		 —
—
54,484 —

Listed investments held at 31 March 2022 comprised the following:

2022
£		 2021
£
UK fixed interest
UK equities
Overseas unit trusts		 84,440
325,669
269,390		 —
—
—
679,499 —

At 31 March 2022 the following individual investment holdings were deemed material holdings in the context of the market value of the entire listed portfolio as at that date:

2022 2022
Market
value of
holding
£		 % of total
portfolio
Wisdomtree Metal Securities Ltd Physical Gold (USD)
Stewart Investors Worldwide
Janus Henderson Investments Sustainable EquityI Inc		 38,987
39,539
36,992		 5.74
5.82
5.44

All listed investments were dealt in on a recognised stock exchange.

St Teresa’s Home CIO 26

Notes to the accounts Year to 31 March 2022

9 Debtors

Debtors
2022
£		 2021
£
Residents’ fees
Prepayments and accrued income		 118,226
16,475		 —
—
134,701 —
Creditors: amounts falling due within one year 2022
£		 2021
£
Residents’ fees in advance
Expense creditors
Accruals
Other creditors		 98,390
973
113,701
3,284		 —
—
—
—
216,348 —

10 Creditors: amounts falling due within one year

11 Tangible fixed assets fund

Tangible fixed assets fund
Total
2022
£		 Total
2021
£
At 1 April
Net movement in the year (including transfer)
At 31 March		 —
1,126,889		 —
—
1,126,889 —

The tangible fixed assets fund represents the net book value of the Home’s tangible fixed assets. A decision was made to separate this fund from the general funds of the Home in recognition of the fact that the tangible fixed assets are essential to the day-to-day work of the Home and as such their value should not be regarded as funds that would be realisable with ease, in order to meet future contingencies.

12 Analysis of assets between funds

Analysis of assets between funds
General
fund
£
Tangible
fixed
assets fund
£
31 March
2022
£
Fund balances at 31 March 2022
Tangible fixed assets
Investments
Net current assets		 —
729,875
63,543

1,126,889

—

—
1,126,889

729,875

63,543
793,418
1,126,889
1,920,307

St Teresa’s Home CIO 27

Notes to the accounts Year to 31 March 2022

12 Analysis of assets between funds (continued)

Analysis of assets between funds(continued)
31 March
2022
£
Unrealised gains on investments included above:
Reconciliation of movement on unrealised gains on investment assets
Unrealised gains at 1 April 2021
Transferred from The Congregation of the Sisters of St Anne Charitable Trust (Charity
Registration No. 233808)
Unrealised losses arising in the period
Net losses arising on revaluation in the year
Less: in respect of disposals in period
At 31 March 2022		 123,747
—

178,031
(30,586)
(23,698)
123,747

13 Liability of the members

If the CIO is wound up, the members of the CIO have no liability to contribute to its assets and have no personal responsibility for settling its debts and liabilities.

14 Related parties

During the year the following transactions took place between the St Teresa’s Home CIO and the Congregation of the Sisters of St Anne Charitable Trust (Charity Registration No. 233808). These are deemed to be related party transactions on the basis that St Teresa’s Home CIO was previously part of the Charitable Trust, and three of the trustees of the Charitable Trust are also trustees of St Teresa’s Home CIO.

15 Transfer of activities, assets and liabilities

St Teresa's Home CIO, a Charitable Incorporated Organisation, was registered with the Charity Commission (Charity Registration Number: 1189921). With effect from midnight 30 November 2021, the activities, assets and liabilities of St Teresa's Home for the Elderly, previously part of The Congregation of St Anne’s, were transferred to the CIO. The net assets at midnight on 30 November 2021 comprise:

St Teresa’s Home CIO 28

Notes to the accounts Year to 31 March 2022

15 Transfer of activities, assets and liabilities (continued)

Transfer of activities, assets and liabilities(continued)
30
November
2021
£
Tangible fixed asset
. Cost
. Depreciation
Fixed asset investments
Cash held by investment manager
Debtors
Cash at bank and in hand
Creditors: amounts falling due within one year		 2,163,022
(1,012,888)
709,391
57,065
98,029
191,077
(212,771)
1,992,925

The assets and liabilities were represented by the following funds:

£
Unrestricted funds
. General funds
. Tangible fixed assets		 842,791
1,150,134
1,992,925

St Teresa’s Home CIO 29

St Teresa’s Home CIO

(Previously a foundation of the Congregation of the Sisters of St Anne Charitable Trust)

Detailed income and expenditure account

Year to 31 March 2022

Detailed income and expenditure account Year to 31 March 2022

This page does not form part of the audited statutory accounts.

CIO
2022
£		 St
Teresa’s
Home
2022
£		 Total
2022
£		 2021
£
Operating income
Incoming resources from charitable activities
. Residential and nursing care charges
Operating expenditure
Residential and nursing care costs
Staff costs
Pension contributions
Agency staff – domestic
Provisions
Depreciation of furniture and equipment
Depreciation of building improvements
Depreciation of motor vehicles
Premises costs
. Maintenance and refurbishment to buildings and grounds
. Light, heat and water
. Rent, rates and refuse collection
. Furniture, equipment and household
. Insurance
. Cleaning and laundry
Residents’ welfare etc
. Residents’ welfare
. Medical expenses
Expenditure carried forward		 444,850 816,574 1,261,424 1,223,609
336,241
7,045
160		 593,321
11,952
1,313		 929,562
18,997
1,473		 921,439
24,345
319
343,446 606,586 950,032 946,103
17,157 34,228 51,385 49,499
12,515
10,731
—		 25,030
1,305
—		 37,545
12,036
—		 39,754
1,957
—
23,246 26,335 49,581 41,711
6,562
11,758
11,860
1,365
4,454
1,099		 18,421
20,732
31,777
2,278
8,908
2,569		 24,983
32,490
43,637
3,643
13,362
3,668		 34,267
25,694
48,535
716
12,900
4,423
37,098 84,685 121,783 126,535
2,594
5,959		 4,924
11,089		 7,518
17,048		 9,014
22,813
8,553 16,013 24,566 31,827
429,500 767,847 1,197,347 1,195,675

Detailed income and expenditure account Year to 31 March 2022

This page does not form part of the audited statutory accounts.

CIO
2022
£		 St
Teresa’s
Home
2022
£
Total
2022
£		 2021
£
Expenditure brought forward
Administrative and support costs
. Staff costs
. Registration fees
. Staff training
. Bank charges
. Travel and motor expenses
. Professional fees
. Bad debt write off
. Accountancy fees
. Miscellaneous expenses
.. Office stationery and expenses
.. Other expenses
Total operating expenditure
Operating deficit
Investment income and interest receivable
Donations and legacies
Covid-19 Infection Control grant
Miscellaneous income
Investment management fees
Net investment (losses) gains
Net(expenditure) income		 429,500
42,419
4,270
2,503
598
181
2,606
—
10,140		 767,847
87,216
4,270
945
739
1,399
27,466
579
1,980		 1,197,347
129,635
8,540
3,448
1,337
1,580
30,072
579
12,120		 1,195,675
131,552
4,270
1,725
1,105
2,522
20,706
1,587
6,690
5,747
353		 10,169
943		 15,916
1,296		 16,669
2,863
6,100 11,112 17,212 19,532
68,717 135,706 204,523 189,689
498,156 903,553 1,401,709 1,385,364
(53,306)
2,370
870
17,323
10
(3,754)		 (86,979)
7,847
1,587
29,404
—
(6,459)		 (140,285)
10,217
2,457
46,727
10
(10,213)		 (161,755)
11,188
8,680
58,861
1,087
(8,323)
(36,487)
(36,131)		 (54,600)
74,333		 (91,087)
38,202		 (90,262)
96,994
(72,618) 19,733 (52,885) 6,732